Rajgor Castor IPO fully subscribed on Day 1, retail portion booked 5.67 times

KIOCL | CMP Rs 476.4 | Shares of KIOCL zipped 20 percent for the second consecutive session and hit upper circuit after operations resumed at its Pellet plant unit in Mangalore on October 14. The operations were temporarily suspended due to the unavailability of iron ore fines and essential maintenance.

The Rajgor Castor Derivatives IPO received a decent response from investors as the public issue, which opened for subscription on October 17, was bought 5.53 times, with bids coming in for 3.78 crore shares against an offer size of 68.49 lakh units. Retail investors bid 5.67 times and high net-worth individuals bought 1.49 times their allotted quota.

The company aims to raise Rs 47.81 crore from the public issue, which closes for subscription on October 20. The offer comprises a fresh issue of 88.95 lakh shares worth Rs 44.48 crore and an offer-for-sale of 6.66 lakh shares worth Rs 3.33 crore by promoters.

Follow live blog for all the market action

The small and medium enterprises (SME) IPO’s price band was set at Rs 47-50. Ahead of the public offer, the company raised Rs 13.56 crore from seven anchor investors. NAV Capital VCC - NAV Capital Emerging Star Fund, Neomile Growth Fund - Series I, Moneywise Financial Services, Rajasthan Global Securities, LRSD Securities, VPK Global Ventures and Nexus Global Opportunities Fund took part in the anchor book.

Brijeshkumar Vasantlal Rajgor, Vasantkumar S Rajgor and Maheshkumar S Rajgor are the promoters of the company. Promoters and promoter group shareholding stood at 67.26 percent and 32.74 percent before the issue. Their stake will now come down to 40.71 percent and 19.31 percent.

The net proceeds from the IPO will be used to fund working capital requirements and general corporate purposes. The book-running lead manager for the issue is Beeline Capital Advisors while Link Intime India is the registrar and Spread X Securities is the market maker.

On the financials front, Rajgor Castor Derivatives recorded healthy earnings growth in the past fiscal years, with net profit rising sharply from Rs 0.52 crore in FY22 to Rs 5.54 crore in the year ended FY23 on a year-on-year basis. Revenue jumped to Rs 428.78 crore from Rs 39.67 crore.

Also Read: Rajgor Castor Derivatives IPO opens October 17, price band fixed at Rs 47-50

The Rajgor family, which is in the business of manufacturing castor oil, castor oil cake, and high-protein oil cake along with trading in agro-commodity, follows the B2B business model.